Does Commercial Auto Insurance Cover the Engine?

Commercial auto insurance provides a lot of the same coverages as personal auto insurance but geared for vehicles used or owned by a business. As with personal auto insurance, commercial auto insurance has its exceptions and limits. One such limit is the engine.

Vehicle engines are arguably the most important part of the vehicle, as it keeps it running and useable. Damage or loss of the engine can be devastating, as replacing it or fixing it can costs hundreds or thousands of dollars. Commercial auto insurance can help—in part.
Yellow cars Lined Up

Commercial auto insurance only covers loss or damage of the engine if the loss or damage occurs as a result of an accident already covered under the policy. Basic coverages under a commercial auto insurance policy that cover the physical vehicle include:

Comprehensive coverage. This coverage provides compensation for damages or loss due to almost every incident besides collision. This includes incidents involving fire, hail, wind, lightning, falling objects, theft and vandalism.
Collision coverage. This provides compensation for damages or loss due to collision with another vehicle or object.
Uninsured/underinsured motorist coverage. If an uninsured driver causes an accident, this insurance will help cover the damages that their insurance would have.

Unless the engine failure or other issue is caused by one of the above, it will not be covered. Commercial auto insurance does not cover negligence, wear and tear, normal mechanical failure, engine malfunction or anything else not related to an outside incident. Negligence refers to avoidable damage or loss of the engine from a lack of care or upkeep.

Can You Add Coverage for a Vehicle Engine?

Some agencies do offer mechanical breakdown coverage. This coverage helps with the cost of repairing the engine after a mechanical problem, breakdown, etc.

Insurance is different than a warranty on your vehicle, of course. If your commercial vehicles have a warranty, a mechanical issue may be covered by the dealership you purchased the vehicle from. Mechanical breakdown coverage must be purchased through an insurance agency. To receive compensation, you would have to file a claim.

Mechanical breakdown coverage typically costs less in premiums but does not include many minor repairs. With this coverage, you also have the option to choose your own mechanic. If you choose an extended warranty, you typically must use the mechanic referred by the dealership.

How Much is Commercial Auto Insurance?

Commercial auto insurance and its optional coverages vary in price depending on several factors, including:

Location
Coverage limits
Vehicle value, weight and cargo
Distance intended to travel
Deductible

Credit score
Driving record of the insured
Claims history

Location affects the cost of commercial auto insurance in part because of the requirements that vary per state. In Texas, for example, commercial vehicles must carry a higher rate of insurance than most other states. These requirements include:

$30,000 in bodily injury liability per person

$60,000 in bodily injury liability per accident
$25,000 in property damage liability

The average cost of commercial auto insurance is about $900 to $1,200 per vehicle. For mechanical breakdown insurance, the average cost for a six-year policy is between $180 and $450.

Vehicles that have higher value, weigh heavier or travel longer distances may cost more to insure. The same applies to vehicles carrying various types of cargo, such as people or hazardous materials. Every state has different requirements when it comes to passenger vehicles and vehicles carrying hazardous cargo. Make sure to check with your insurance provider about requirements and additional coverages.

Cutting down on coverages can save you money, but it may also leave you open for dangers—especially when it comes to your engine.

Does Commercial Auto Insurance Cover the Engine?

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